Question: QUESTONS 9-11: RATIO CALCULATIONS - FORMULAS FOR EACH CALCULATION CAN BE LOCATED IN CHAPTER 17 OF THE TEXTBOOK: 9. (18 points) Calculate the following

QUESTONS 9-11: RATIO CALCULATIONS - FORMULAS FOR EACH CALCULATION CAN BE LOCATED IN CHAPTER 17 OF THE TEXTBOOK: 9. (18 points) Calculate the following liquidity ratios for the current year. Explain the meaning of the calculation, and support a conclusion on whether the resulting ratio reflects a favorable or unfavorable situation for the company. Assume 50% of the company sales are "on credit". a. Current Ratio b. Accounts Receivables Turnover Ratio c. Inventory Turnover 10. (18 points) Calculate the following profitability ratios for the current year. Explain the meaning of the calculation, and support a conclusion on whether the resulting ratio reflects a favorable or unfavorable situation for the company. a. Gross profit percentage b. Rate of return on Total Assets c. Rate of Return on Common Stockholders' Equity (ROE) 11. (12 points) Calculate the following solvency ratios for the current year. Explain the meaning of the calculation, and support a conclusion on whether the resulting ratio reflects a favorable or unfavorable situation for the company. a. Debt Ratio b. Debt to Equity Ratio Page 2

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